For the most recently ended trading week, the Long-Trading Portfolio declined by 2.3 percentage points. This is compared to the 24 basis point loss on the S&P 500. The portfolio tends to be high beta, and can move significantly in any one week. That said and following this week, the portfolio has now declined 11.8% so far this year versus a 9.2% gain on the market. Since inception, the portfolio has lost 20 basis points in value versus an 8% gain on the market. The chart of the portfolio versus market indices can be seen below.
Looking at new additions, I intend to add a position in Diane Shipping (ticker DSX) on a pullback in the stock. The stock recently hit the new high volume high screens and is now testing July 2011 swing point, where the stock broke on volume. The stock has shown very positive volume characteristics, indicating support coming into the stock (and the industry for that matter as competitor stocks are also running on volume).
The fundamental case for the DSX is that after years of overcapacity in the shipping industry, we are now starting to signs that this dynamic is turning, as order delivery rates slow while scrappage of older ships continues. Although more price leverage could be found in other industry names, I think DSX's balance sheet structure provides investors with some protection, considering the considerably cash position.
The fundamental case for the DSX is that after years of overcapacity in the shipping industry, we are now starting to signs that this dynamic is turning, as order delivery rates slow while scrappage of older ships continues. Although more price leverage could be found in other industry names, I think DSX's balance sheet structure provides investors with some protection, considering the considerably cash position.
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